Enact (ACT) 7 Feb 232022 Q4 Earnings call transcript

Good day and welcome to the Q4 2022 Enact Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Mr. of President Vice Kohl, Investor Relations. Daniel ahead. go Please

our Thank call. earnings to you good morning. and fourth quarter Welcome

then Joining closing are and results fourth and our will Dean back provide me then Executive call overview before performance, Mitchell, remarks, Chief today an your Rohit questions. we details our to Chief turning Rohit and Gupta, discuss progress will the Financial strategy. our the take quarter Officer of Treasurer. and against will and Rohit for business, President Dean Officer; our of

company's The contained and earnings section the with the of closed are section materials we Results. website Quarterly financial issued marked the the along metrics. operational after fourth at our market yesterday on www.ir.enactmi.com a XXXX of Relations available for under financial set These comprehensive results Investor quarter of

Today's projections obligation and call use estimates, uncertainties to or different. actual results statements. These information. no include current a We of be are new subject revise materially may update of cause risks as expectations, result are today's forward-looking statements the assumptions, is as based and such to on of undertake recorded statements any to and which will being and date

please of our website. well today's review discussion and will statements on available filings which be in cautionary these a with forward-looking risks our press language regarding For as the as uncertainties, in release the SEC

certain non-GAAP SEC in website. earnings metrics of our mind in GAAP on the our prepared Reconciliations earnings today materials measures. keep and upcoming release, the include measures management's presentation, press Please found most our to and these be can relevant filings the remarks

to With Rohit. that, over the I'll turn call

record XXXX quarter year market. Thank joining to performance, Thank total achieved us you, milestones, generated delivered well new in year a discuss of shareholder results. our exceptional for and and fourth ahead you an we Enact return the for Good several which everyone. Daniel. full was morning

that persistency by full the quarter of year. insurance of reached and $XXX fourth billion, written the new the rising year in-force record with for ended insurance XX% We driven in million $XX

continued the $X.XX per diluted equity was product return for record These ago income from execution and strategy focus $XXX continued and full a on the talent Net of work reflect risk Enact's cycle-tested year commitment their dedication. the like all growth for are and share, employees. our of results management XX% year of and the I'd a was to thank of them up and million XX%. hard or

and As all our milestones several strengthened progress we I strategy. compete and reflecting win business. new XXXX, We value significant ability in proposition achieved mentioned, of to our against aspects

Our investments We've in understanding our business innovative seen decision-making. risk. of and driving solutions and including efficiency efficiency our have technology-driven while also and from these differentiated investments benefits enhancing layered underwriting tools several deepened across improved further platform,

our at to and that team is made of One with our Supported customers and deepen business of I'm the to enhanced stated the on in meaningful customer our financial expand was our our committed flexibility, relationships either the activated to new business increased and by say we XX% we IPO or momentum our IPO year. new building this investments target since goals in share our and have our progress. pleased

and sufficiency of We our PMIERs a to continue strength, We with XXX%. year maintain financial ended to take flexibility, balance actions the strong sheet.

transactions markets demonstrating and of risk capital, risk, in and capital our transfer strategy to to excess-of-loss overall our completed cost-effective continue period We execute credit reinsurance loss a ability volatility PMIERs to source manage spreads. and widening protection three against our

sheet. flexibility and our And recognizing balance of the strength in received upgrade July, IPO, our since we Moody's second performance our and from our

placed end that necessary restrictions to on met fully the have the all Enact of believe XXXX, remove of GSE. we Genworth the Finally, as conditions the Enact and by

confirmation upon enhance and elevate milestone GSE group. significant this financial competitiveness step our of will than on a our GSE, flexibility will from we capital no stringent requirements to the that peer lifted restrictions our by further be the expect making subject result us more and Enact a As longer

investing on disciplined growth, focused our million. cost for expense $XXX we target below our In addition our management were to remain of in levels and XXXX

we focus part agreement program fourth market Voluntary ensure As Shared Services during renegotiated of aligned disciplined dynamics, our Separation expenses our Genworth. and operations the and are to with our current a quarter, with affected

a achieved excellence, expense particularly in We targeting environment to are discipline during below to cost uncertain have what in Dean will say remain committed we this XXXX. to remains on more that market in operational comments. currently and response levels and XXXX his

turn me to achieve of for allocation, initiation dividend the our commitment year. our to capital enabled let our strong and special to returned the million shareholders return quarterly where regular execution dividend in our $XXX capital Through we of Now, the just XXXX. cash course over December, us over

$XX share program. million In the November, of approval announced repurchase also we Board's

balance for strength actions the cash our our flows, together, have shareholders. confidence commitment our our sheet, our create reflect of to of these value Taken and the the in we sustainability business

like for capped Enact. solid strong touch to a our now year on I'd fourth which quarter,

While in a resilient. slowdown our seen remains housing have activity of we fundamentals the business

season we wrote one-time As quarter. of of billion in inclusive a mentioned Insurance fourth record earlier, in-force $XX I new reached deal the NIW, a and

smaller fourth market theme, the NIW in a in gained suggesting sequentially quarter. share Enact this marginally Excluding was lower

and we engine the strength reflects expand of NIW it As to value on pleased customers. previously have our and platform to largely are industry market our with fluctuates new variations, driven ability and we the business performance rate commented relationships by our deliver across our quarter-to-quarter, win share

remained environment The also constructive. pricing

new well. and quarter, into increase saw actions pricing and we continued implemented have as an these several on we business in first the industry price the quarter we increases During

continue write generates We attractive value are confident shareholders. written in for that our returns ability to new risk-adjusted to and insurance

fall. support Persistency persistency quarter, At discussed again originations is our the quarter, mortgage our in as and forward. improved rates continue in fourth rise persistency XX%. this moving and at I've mortgages natural of portfolio, below during XX market and the to hedge least increase the As had dynamic rates previously, of to a XX% new points expect basis current business to rates interest reaching tends we end

persistency insurance have a Higher in-force, business has driven as to without record a from the which levels be duration increase increased cost. benefits and tailwind insurance continued new corresponding in

Our was the pre-pandemic and stable delinquency rate fourth in level. quarter consistent with

delinquencies had XX% XX% mark-to-market of of equity. Importantly an or more estimated

resolution of risk an fourth a to forbearance in approach quarter, Ever-to-date, home release management long-term the additional mitigation the of of to resulted price and in reserves plans favorable a appreciation, leading of net loss million and $XX X%. loss ratio our

continue take this a view performance to given any the is factors on we I uncertain and quarter, believe the last environment. in well with careful credit within loss prudent other the reserves uncertain may did future to we it affect prudent As environment reserved us consideration portfolio. for to macro which be

And weighted quality remains average X.X% was in-force healthy. in the market slowed, and portfolio XX% FICO average credit our our housing The risk our On of has an was portfolio overall basis, remains believe insurance while was loan-to-value The risk-in-force. XXX. layered we during broader quarter of score ratio the quality favorable. underwriting the

to we expected beyond and though near-term. about the XXXX market the economic Overall, market believe forward. are are smaller remains speak is our relation we we now environment factors a MI business how to and in uncertainty like thinking and moving housing well-positioned in about these I'd and for

and and pandemic borrower are accumulated the pose had household Households a While draw the balances revolving and increased. that have cost healthy, possibility savings employment sheets recession the during to card have balance inflation, of down risk. of started rising buffers credit

long-term favorable pre-pandemic is And driven are to homebuyers demographics supply prices. said constructive which That household surrounding that strong levels factors lower look as to for and housing especially is an the buyers in revolving help we still environment a important by for mortgage, first-time These labor market, insurance and supportive industry housing qualify balances and are remains an market tool to affordability. see the and tight, both of mortgage is savings the we demand MI to strong.

the outlook costs backdrop, foundational capabilities, near-term appropriately the our the shareholders. on cycle-tested MI for while we ensuring uncertain, we balances the long-term both the strategy, execute continue in this appropriate Against actions market will in industry. and our and investing confident our and financial flexibility So our create strength the are operations prudently to strength align we of taking reward with maintain to business value risk to and that new environment, pursuing support policyholders and is our

our the place goals. Our plans performance evidence in achieve to that we XXXX people is and have right in

mortgage to an now facilitating elimination the to upfront last homeownership. and that important the sustainable FHFA fees certain borrowers equitable actions few in months over products. has and for like actions to access These comment the on announced pertaining of represent step affordable I'd

responsibly is by Enact believe support encouraged spirit borrowers and the mission with consistent be homeownership. at dream our the these of to We continue the help mission maintain achieve core changes of people and FHFA of to

Before to will I would performance, been making beyond committed close I our and financial that be note difference. have we a like to

to to a We helped the who might be past not qualify have mission mortgage. homebuyers of have XXX,XXX achieve XXXX And our homeownership. help those the spoken for of in able otherwise dream in we

for the leadership year diversity In award diversity, the making Mortgage Association, mortgage accessible our industry inclusion, Bankers in from were more residential and the this awarded equity increasing we addition, and communities. and leadership demonstrating homeownership underrepresented

minority innovative We created homeownership that our to ESG will and new commitment our governance bring environmental, into formed finance. strong diverse to address have out also lays which and recruiting long-standing mortgage gap are road recently our We published These approach social ESG help issues. and the map, priorities and talent programs part of examples partnerships principles.

on more publishing will inaugural the the the ESG half as our We first XXXX. progresses in of year report front have this say of with to

business demand solid. believe uncertain, are in our drivers the closing, remain while And In long-term we of remain near-term fundamentals place. dynamics

goals I continue we strength execute this forward, stakeholders. flexibility well-positioned to our for financial Going in and value to creating and needed we maintain environment. will all Overall, navigate and and believe remain continue our achieve the succeed to

Dean. it turn now to will I over

million share in XX%. was delivered year quarter was diluted compared XXXX. in same to quarter share as the was approximately the share was operating $X.XX per and an last share Good period or return morning, quarter GAAP operating of the Rohit. $XXX as everyone. last $X.XX per diluted $X.XX same in year, on per share year to another third XXXX. equity Adjusted equity diluted per income Thanks diluted and diluted $X.XX solid of per performance. per $X.XX approximately in income net the period diluted exceptional We $X.XX XX.X%. share third $XXX million, Adjusted and compared on Return or

to compared compared XXXX. in million, Adjusted per share million, per full operating $X.XX income million, share to $X.XX XXXX. the diluted for per diluted $XXX or net million, share, totaled in diluted share, $X.XX $XXX was income year, $XXX $XXX For or or $X.XX XXXX or diluted per GAAP

Turning revenue drivers. to key

New billion $XX insurance the fourth in the quarter well written a in and NIW $XX was included $XXX the totaling as XXXX. transaction in the billion billion one-time quarter of in quarter to quarter, compared seasoned fourth million. $XX third

driven sequentially year transaction, resulting mortgage opportunistic interest and this versus increase primarily NIW Excluding the prior by the recent in lower XX% rates. decreased X% from originations

insurance our quarter. last New in total XX% written to NIW of up the purchase transactions for made quarter flat

policies of strong prudent our up risk written standards. our payment overall monthly new the underwritten remains are one-time profile primarily quarterly driven quarter addition last market written In from loans insurance insurance transaction. of to down XX% The that by new XX% with made credit

rising again in With XX%, an rate and from last XXXX. the model. natural the increased of that December. to quarter the provides persistency quarter XX% rates XX% Rohit in annualized of hedge discussed quarter fourth up interest business during XX% reached in persistency fourth Persistency our

in future persistency. is short-term, and Given $XX combination sequentially the of to Insurance-in-Force increased interest the see elevated a record for of and levels, persistency of which profitability in continued of in-force expect to new positive insurance XXXX strength driven written expectation XX% that the billion $XXX will billion, our we in new increased the remain rates by portfolio. X% a insurance

to down premium the points guidance basis year-over-year, rate in X.X we sequentially which and provided is points down was of favorable XXXX. XX points Our base basis basis X.X

true premium As changes from period rate noted in uncertainty. are by impacted a which quarter-to-quarter, to economic of we've precise base and especially can estimation heightened makes variety factors is of difficult, before, deviate a which

rate base As XXXX. trajectory providing result, guidance will on yet be for our premium we a not

XXXX However, we the basis do than decrease less be the points. X.X of expect to change

reflected also addition cancellations net changes premium rate, lower In rate in year-over-year. our premium to base sequentially premium single earned and

quarter single dilution. premium limiting earned For million its only cancellations of contributed the for potential meaningful premium $X net future

by the for to our X% XXXX the million been our the Revenues year-over-year at rate $X.X million, $XXX driven billion. industry has approximately in Over $XXX program. last million CRT down the net period revenues and efficient same past the quarter compared earned quarter last several were highest premium ending quarters, were in partially in year. $XXX Total

earned older cancellations higher-priced year-over-year. premium as decline were The written and down down ceded our in lapse of our premiums premiums as net and risk compared single prudently manage insurance slight X% to premiums Net year-over-year, as transfer to higher well our sequentially decline in new the we million earned policies program. through modestly $XXX X% risk continue a reflected as credit

in up year-over-year. sequentially XX% income quarter XX% Investment the million, and $XX fourth was

X%. yield in tailwind in for rate year, recent the for million, up XX% over increased is investment to as investment income the above interest providing rise our portfolio, rates The money For our a totaled $XXX XXXX. quarter new current environment

by losses not identify to create realize the Unless as where hold the portfolio, million that par long-term values trend within of the unrealized value year-end, portfolio our $XXX to do to we we investment value. opportunities securities these market million. As can decreased $XX maturity in to we losses expect

XXXX. Turning quarter to of benefit a of million compared Losses million in the $X a $XX as and last to in provision $XX million fourth quarter were credit. the of quarter

of Our loss to ratio and fourth quarter X% as the for negative the XXXX. last quarter quarter X% was in compared XX%

reserve Losses driven XXXX $XX action reserve expectations partially were and in favorable and $XX offset as our in reported strengthening economic resulted were delinquencies and loss prior million which the above ratio peer increased by prudent response on incurred reserves This uncertainty. XXXX on in million and delinquencies of by prior a performance take release not was to but in quarter. the we quarter the

a were losses $XXX year, of to $XX the XXXX. million million For benefit compared in

delinquencies approximately in of increase natural coupled that increased FEMA-impacted to disasters was from going X,XXX approximately their from delinquencies pattern with impact and from new driven higher normal quarter. loss sequentially Seasonality new XX,XXX books areas in large recent by X,XXX. New the by part current in delinquencies contributed. This aging XXX are development the also through

of delinquency reflective impact levels with new consistent trends. continuation was natural from delinquencies rate positive the the the Excluding quarter pre-pandemic our of X% new and for of disasters, credit

approximate estimate to the claim rate are is delinquencies new approximately for Absent new disasters, a claim new delinquencies to reflecting prudent economic and booked Our as rate related uncertainty. XXXX at quarter. delinquencies XX% heightened natural the an on of all approach reserving XX% our result measured

delinquencies the XX,XXX. fourth Total in quarter approximately were

X%, embedded using XX% our Excluding disasters The delinquencies is from an price natural the levels. XX% associated the delinquency the pre-pandemic substantial stabilizing mark-to-market assessment. position of quarter at equity an our delinquencies or of delinquent remains end was which approximately having estimated index-based of equity rate policies house near with more

for this frequency past, the mitigate the to the progress in noted I've ultimately and can As claims. future of potential loss help claims that delinquencies

and third and XX% quarter of in fourth million respectively quarter $XX and was ratio million $XX versus expenses XXXX. fourth the in XX% Operating the respectively $XX in were of expenses. XXXX; to Turning the expense million XX% and quarter the

expenses For year, operating million. the totaled full $XXX

stated, voluntary separation ratio. that resulted we in a quarter has of in million, charge excluded a which the during Rohit from our operating is initiated restructuring impact expense As quarterly adjusted program a income and X-percentage-point represents $X fourth

to Enact. in million XXXX $XX million for we These shared and services XXXX. scheduled By activities to million additional have amounts respectively and paid were to migrate XXXX. and $XX.X $XX in we $XX been and In addition, and $XX services existing revised pay to to we million the agreement respectively as XXXX with Genworth continue we million Genworth, renegotiated agreement, in XXXX

ongoing our to reduction initiatives and cost operating While efficiency cost operating us on XXXX reduction million, annual focus position and still X% in we of inflationary $XXX target expenses a an operating XXXX. which environment, are represents from

and capital liquidity. Moving to

Our third above capital is of billion approximately the our in-force requirements program. in quarter risk loss our billion $X.X XX% PMIERs billion transfer program. compared or $X.X $X.X approximately sufficiency very the by Approximately XXXX. PMIERs our covered $X.X and remained quarter we published at approximately provided or in of risk risk approximately At transfer credit strong credit of the by billion end, of had coverage XXX% XXX% to quarter PMIERs credit

be on first the Rohit will the longer to GSE, financial conditions no the conditions and required satisfied restrictions for the ratings issuance As respect the restrictions. with subject and confirmed imposed Genworth Enact to senior on have touched earlier, requirements after August by GSE If elimination we GSE and our of believe of Enact we notes. XXXX capital

and competitive elimination restrictions the and to is While direct greater levels, restrictions. you and flexibility our allow in and further for disclosures, on to the sufficiency redundant these This information detailed conditions PMIERs largely restrictions the financial of we additional current matter our prior will our were prior disclosure position. for would enhance

allocation. Turning now to capital

We prioritization to period, with execute capital a return the $XX capital quarterly shareholders. million the million, of along special to fourth including our continue our paid $XXX In cash to we against dividend quarter, regular framework during our dividend. commitment

share also with $XX to balance million the program an overall We a initiated the capital program float. tailored Enact's of to return designed size shareholders that repurchase to is

XX, As have XXXX, million. program $X under repurchases of the totaled January

our operating XXXX. over quarter, planned. financial Enact ability Overall, the in our of to primary to Holdings, capital $XXX bolster holding we capital to return Inc., a mortgage of million completed company, shareholders million insurance our During to company, flexibility $XXX distribution returned to EMICO, and its as support shareholders

me the executed against the uncertain with and saying strategy our in strong very results performance and We've that fourth close generated an environment. our pleased in by am year. both Let I quarter

adapt and prudently to managing The and market business, flexibility financial shareholders. positioning we maintaining see to sheet, balance risk. we necessary forward, us Going our creating of our the our opportunities to strategy as continue operational while strength value for realize remain on focused ahead, the and conditions

With it Rohit. that, I'll turn back to

Thanks, Dean.

performance pleased we all for delivered of are stakeholders. We value the in our proud created with are and the we XXXX

As protection, confident resilient we are enter we in a sheet we of risk the and well XXXX, credit and a balance both strong remain first more portfolio, positioned near long our term. business. quarter With for the significant

the in to time, critical many broadly in industry play stakeholders families the more and In other sector. a uncertain supporting continue we an the housing and part MI

soundness proud contribute and are safety and incredibly seek the of forward. to going to continue this of to industry the We will opportunities

Operator, we for Q&A. are now ready

Instructions] line with Credit from question first Harter Thank Suisse. the of you. And will [Operator Doug come today's

line open. is Your

you Hoping or the PMIERs relief Thanks. more little that been have paying. change charge a about could about from XXXX Does going forward? you talk capital in return bit that the you the think way extra

GSEs, Yes, both restrictions believe Like to Enact Genworth thanks -- happens, we believe question. the need said for as to those restrictions. well do our conditions met lifted. we've Doug, be as by to we be expect in the we that But once the -- necessary They validated we fully remarks, FHFA. those lift prepared and those

those think when largely they our to sufficiency place. being in PMIERs went we talked about redundant restrictions I levels,

that below levels a balance perspective, were the sheet were prudent PMIERs going just managing So, our any we naturally they from from sufficiency in business hold to perspective.

also restrictions. that the otherwise hold. approach in release same or think going not we would They're some transformational to same of they're of windfall of provide elimination exists that not I certainly capital that the in perspective

in that would in economic of enhanced creating in probably stress. and uncertainty flexibility useful times We are financial economic flexibility. times certainly of say They additional is heightened

So approach. we're about that's And I it. thinking the that's think how appropriate

perspective level other it how only Dean us well. also in look a to a From of covered us. it field puts competitive at on stakeholders thing I pretty That's playing add the that, think Yeah. I'll terms

this a glad at very good and for us is point. to be this milestone So,

you. Thank Great.

the of Thank that question. Bank from Mihir you. for line One next our will And Bhatia with of America. moment come

line is Your open.

any for it? was I seasoned mentioned Hi. taking think you Can you Like, I about? detail competitive deal, opportunistic Good color Was mentioned, start morning, it like it? you question. wanted to you asking NIW that that more one-time and you taking on – or about this you the any thank provide my already on any a like this quarter. by the how Did background a did were process? know more you provide it over? Was come but can NIW

Mihir. Thanks Good morning, question. the for Yeah.

these a I this NIW talked transaction portfolio been portfolio loans for time. would that So their deal we say period on and with the one-time was about a lender that, lender, the of deal had holding

be of our they seasoned, capital one-time we in of do our value So well that the as thought spike was on knowledge perspective, our the it loss the several lenders environment. transactions MI basis. the us one-year and a out. for proposition our the current very were portfolio deal are frequent flow two-thirds process. was relationships capital a were high These day, as than magnitude mortgages of We the worthwhile But the in there disclosed this that looking actually in transparency our a coverage strength we were to win not of involved Most to companies and LTV from made deal ensure coverage. deal. deal. to their essentially, more And end the at And that best expect And disclosures. regular

Right.

one Sorry, follow-up. just

So these they high were to ensure? looking were that loans LTV still

was These and within That's found loans we LTV our basically origination, the at portfolio attractive policy. itself high right. return credit and are

us. for aligned everything So

about was I where I'm you additional should the some or a should is that a consider? going what typical Like, less like this trying parts puts expect? are should and ROE, Are XX% quarter-to-quarter the strengthening, that had guess, moving just or understanding can what takes results consistently, doing forward, more typical? quarter is there is depends of Like you you we this a Okay. I more returns less have of around lower? on it think higher going some business generally some to, lot some ask release, you're if Enact had cetera? just as underwriting economic quarter the variability this And at but run the right? like, get follow-up, you're are at around, underwriting mill you environment, be one to? to and or et What But we we Is to from reserve

good Yes, Mihir. question. Very

of So interest going in start rates chime-in. lot quarter, release, on our let this obviously with perspective kind a Dean macro a I would say, there of reserve then including flows portfolio it in in comes the when investment see that our say, on what But market running through to ROE. aligned we about environment the more this would and that of things conditions. is the have are business way I impact with me we think much

seen And So the three more we conditions market result about of talking we price have our being been uncertain. have quarters. as that, last a increasing for

that, So increases. you saw price third I this have seen our higher from magnitude quarter, us and quarter. in remarks stabilize those increase higher frequency a price and a And of and mentioned my second quarter we

are think a our that comes that the for action. new different drove sure and insurance we when scenarios making it adding, we economic that I we resilient So to are written are building portfolio

not about are guidance that that specific returns, think business accretive shareholder writing providing value. pricing we we believe you any we when do returns to our but create are are So to

ROE perspective, it. normal chime-in whether sense have up has of balance terms from Now, Dean a abnormality in I'll this or some was sheet

only pointed out you reserves. The the say I'd is, loss thing, Yeah. Mihir

ultimate claims best delinquencies. represents reserves I of time the at those it estimate a think loss booking any existing our of we're on end period

would I expectation our say, isn't that – reserves we're So through that's releasing time.

to a in relative could about I expectations thinking our of measured prudent basis. a elevated But in certainly the at we our ultimate over levels -- mindset those reserves when those best Now, prospectively. and estimate happen embedded just that continues our way set develop to think activity to time perform in if expect how establishment cure we very is period on an

taking you for will it. my questions. I back queue. in Got Thank get

next George moment our Thank the KBW. One you. of come with for from Bose question, will line

line open. Your is

kind discuss Good the with at special of dividends year? a to be, Will cadence similar sort of and last end? year you the, of, morning. everyone. of, normal Hi, this Can dividends kind it the

question. the for Thanks Yes.

in tools think terms appropriate start. I may about of at that dividends be have So we place the disposal thinking to our most

the So quarterly we've initiated obviously dividend.

continue Our prospectively. expectation to is

initiated as based special macroeconomic tool opportunistic program. opportunistic at continue we'll shareholders. well And also to a combination through We a prevailing end as opportunistic to share the That performance gives both to of time valuation on well environment. evaluate repurchase of us very as capital that's then years return based as the business the dividends on

probably So playing cadence have you'll out. is dynamics I to think those cadence see the subject we the

Okay. Great. Thanks. then you in how us the notices be disaster areas. works? And would new FEMA those that remind for the reserving Can

Sure.

So of question in Bose context in your PMIERs, -- the the of is your the or context is in context reserves? question

of context the In reserves yes. actually,

Yes.

rely apply have of we historically approach on So do based and our experience. of delinquencies delinquency. our activity storm-related our best performed those on estimate how with Think on delinquencies manner types same Harvey, in same FEMA-designated other the Sandy We do any ultimate experience. claim we storm-related that about Irma, Superstorm

cure that elevated at Our those suggests experience rates. will

claim And rates that. reflect our so

Thanks. Great. Okay.

moment And you. BTIG. that Hagen with of Thank question. come One for Eric will our from the next line

is open. Your line

Thanks. Hi. Good morning.

you're are bucket any here? spotting homeowners with. which developing is that so within that and that be it how of it some loans But that unemployment? that from Just one on new see to delinquencies, maybe trends would could Like there's do say Is those you underwater you in some delinquencies? cases? low begin And

Yes, Eric. for question. Thanks the

that remains lot of been good credit then goes the from to macroeconomic of in mosaic the performance. support then credit credit into quality and I household performance with the home remains kind price There's think despite the underwrite that loans referenced Rohit landscape strong cumulative even of a meaningful everything performance insured of savings that appreciation and supportive a quality strong. strong employment its prepared our all remarks credit balanced pretty of risk current strong our form with that that has I think factors consistent

think is the be of increase I XXXX. through credit XXXX on development our thing the pattern into new heading new largely books I one have delinquencies But are loss we that that do eye macroeconomic have the large driven at the do to could think we is environment. going by end and that day performance aging their normal

that. keen a towards have we So eye

And this to to of correlated believe unemployment is performance during question, specifically, part to maybe credit going we more Eric date. the strong with be your more employment that remained has and highly future cycle

home at macro, at employment, emerge to other then if the appreciation and what progress those of How the increase, challenges. as impacted. So delinquencies we're look see employ be That loss they financial recessionary the mitigation pressures, that ultimately and of in we'd we -- a affect if how look that pressures expect some would result have we'd claim price activities more by recessionary credit. going times significantly unemployment impacted cumulative those ultimately deterioration during is being

thing when the only different place we is, I just financial in think -- very than macro crisis. I'd operating pre-global from or perspective answer consumer, Eric, question think a we and are housing where about Dean's a we you the Dean's to used be environment are add to in

the much So impact price appreciation, lower. of decline home home consumers on price is

as primary will And market recently, higher. in about said is don't pretty lower our supply then the equity The quality being the a prices new And that's also significant. think for fluctuate accumulation primary portfolio we occupant We much in Dean primarily we environment -- as this these for cumulative and the where saw while is housing that market. home delinquencies. are an consumers think driver credit you in

the want business would that maybe Yeah. paying how is dividend is today? Yeah. I it too. to PMIERs change, lower or were for follow-up And your or ratio a dividend you any on mean, detail. either Thanks the That's to appetite I your differently, if run than how higher helpful.

talked comfortable today. Eric, under uncertainty PMIERs sufficiency maintaining levels PMIERs XXX%. think levels Yeah. certainly above are they about more We've economic we're where I our with

our return that shareholders I going XXXX. headwinds capital how of to for going kind capital by driven is economic most on XXXX uncertainty think the return are to of in itself macroeconomic appropriate ultimately influence shareholders our to of the to resolve -- amount really be and perspective those tailwinds ultimately --

shareholders. to talked of in I we've one returning the is same follow capital framework about key aspects think the that of to past. that we're going capital the And prioritization

to in that. at our road we think return in dividends And going to of our thoughtful to share XXXX continue least capital about little bit quarterly expect with be prospectively repurchase provided a map, we've story that our of we're part I So program. a

$XXX continue can to your business through together, return the I $XXX incremental to in performance if XXXX, see as remainder planned if the that. you put million to and there's then of figure that we'll million out the year as landscape well those of capital think economic way evaluate you to

an economy, Eric And might a something a PMIERs I times an target might about is of more But we've for environment, outcome. Yeah. we I perspective, be of target think in of good and times into from that business. range -- as in uncertain cycle head the kind think be just normal our PMIERs talked PMIERs

It's in out want doesn't explicit on we buy outcome that our loss any of if we are That ratio. that more to return an drive ratio. to So coverage might more PMIERs that capital part an it imply scenario. a of drive portfolio, of trying higher

that nicely So with links what I Dean said. think very

very very Thank guys That's much. helpful. you

Thank you.

Eric. Thanks,

question-and-answer call the now I all like turn to would to for back in closing you for Gupta participating Thank session. Mr. any today's Rohit remarks.

you, of Bank Conference. Securities to America at look in everybody. all. forward your and forward conversations. the of next Thanks in Thank Enact also Insurance appreciate We future interest sharing look to seeing I you Thank you story our Sheri. week many

This participating. concludes program. for you Thank today's

may You disconnect. now